UPDATE 1-Canada August housing starts weakest since April

TORONTO, Sept 10 (Reuters) - Canadian housing starts fell
more than expected in August to hit their lowest since April,
hurt primarily by slower condo construction, according to data
released on Tuesday that tempered property bubble fears.

The seasonally adjusted annualized rate of housing starts
was 180,291 units in August, the Canada Mortgage and Housing
Corp said.

This was well below market expectations of 189,500 starts
and down from a revised July reading of 193,021 units. The
government housing agency had originally reported 192,853 starts
in July.

The August figure was the weakest housing start reading
since April, when new homes were being built at an annualized
rate of 175,922. The average so far this year stands at around
183,200.

"Although today's report and yesterday's permits data
suggest housing is holding up fairly well, we expect higher
mortgage costs, buyer fatigue and recent policy changes to
contribute to a more appreciable slowing in the months ahead,"
Peter Buchanan, an economist with CIBC World Markets, said in a
client note.

The report follows data out Monday which showed building
permits hit record levels in July, mostly from robust strength
in the commercial sector.

Canadian policymakers have been keeping a close eye on the
country's housing market after record low interest rates helped
fuel a post-recession property boom that some fear could be a
bubble.
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